The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1887-01-15

VuiuuttOuS HTcbtcT tnHu tlNty pBT CbUt. OI tnUll
true value In money, alleging that sixty pei
cont. was a full average of the general valuation
Of property; and II was recommended thb to
avert serious consequence that would ensuo II
they succeeded, and TO secure equality Of taxa
tion and Justice to I'LL, revaluation be had
subject TO equalization by State board, so that
oil valuations Of all kinds OF property might be
cqualized over the whole State.
Since that recommendation was made, the
| court has rendered q decision In tho Cuyahoga
County bank cascs, in which the court finds the
fact TO be that tho real estate of that county
was valued for taxation ut the last docennial ap
prasement at only sixty per cont. OF its true
action as to realty. personal property is as
| sessed and returned in that county at tho same
figure. nnd holds that In consequence in that
| county the shares Of National banks can not be
| assessed at higher valuation. and accordingly
| enioins the collection OF taxes on valuation In
excess thereof. The consequences Is that the
| State Board Of Equalization for bank shares
must either abdicate its powers entirely, or by
doing its duty rs required by law. seem to court
constant litigition; or disrcgardng the plain
to all the other counties, or II must level down
the valuation OF the bank shares resin. IN the other
standard, which would be unjust to ail other
| kinds OF property.
| the plain requirements Of the statute. They
| have accordingly refused to be governed by the
standard of valuation which has been adopted
any Of the many applications that have been
made to them by the banks OF other counties to
| have their valuation scaled down TO conform to
| 1t is an injustice to the banks OF one county to
make them pay taxes on higher valuation than
the banks Of another county pay on. II is not to
| quiesced In. Unless, therefore, something BIO
| done the banks of the other counties through
out the State will no doubt succeed in securing
| the same favorable valuations that have been
| secured by the banks Of Cuyahoga County. And
| what Is secured for the banks oan not and must
not be denied to any other class of property.
| The consequence Is that we are liable to serious
embarrassment so long as the present conditions
continue.
owner of shares In q National bank has right,
In listing the same for taxation, to deduct from
their valuation all his liabilities, and for this
reason, viz the shares OF National banks are
taxable in the States only to the extent allowed
by section 5sl9, Revised Statutes OF the United
States, and this section provides that they shall
not be taxed ut a higher rate than monoyed
Constitution of Ohio provides that every species
OF property, including 'oredits," shall be taxed
the Revised Statutes Of Ohio defines the term
"credits" to mean only the excess Of credits
over liabilities and this statutory definition is
applied in listing credits for taxation. The
court holds that the credits from which the
citizens of Ohio are thus allowed to deduct their
debts are moneyed capital in the hands OF pr-
52i9 of the Revised Statutes of tho United
States and that it would be taxing bank shares
Mt higher rate to not allow n similar deduction
Tho capital and surplus OF the National banks
Of the State amount to about sl8,5o0.0D. They
are taxed upon this at about $31 100000. A con
siderable part of this S31 900 will no doubt
disappear from the duplicate after this year II
the banks insist upon the advantage. the de-
cison gives them; and rs indicating that they
will dc so, it may be stated that many OF them
have already made application therefor to the
State Board Of Equalization. 1t may be safely
| assumed that at least all such will avail them
nf ndy ntaO az
shares in 1887 The result will be not only to
embarrass the State, but to unduly burden oil
other classes OF property.
Before suggesting possible remedy, another
fact should be mentioned. The last decennial
appraisement OF real estate was had ut period
OF great prosperity. 1t was q time OF general
high values. Since then there has been u heavy
decline Farm property is from twenty five to
fifty per cent. cheaper to-day than 1t was then.
State, where they have not been affected by the
growth OF cities or other development. are now
taxed on the average more nearly at their full
value in money than any other class of property.
In fact, the farm lands of some of the counties
are taxed at even more than they could be sold
for But while this is true OF the farm lands,
the reverse is true OF the real estate OF many OF
the cities of the State where there has been
great growth and development as in some por-
tions of Cincinnati and at Cleveland, Toledo.
Columbus and many other cities that might be
named and the valuations placed upon the real
estate of these cities in 1870 are in the aggregate
less than fifty per tent. OF their present true
Nulue III money. anu III bOIuc CuSCS IL WILL uOG
exceed twenty-five per cent.
The consciousness OF this lack OF uniformity,
and the consequent injustice that must result to
all who arc fairly taxed. has had much to do
in producing the unsatisfactory results that
have been experienced.
1t is thought that Congress will SO amend sec
tion 5al9 of the Revised Statutes of the United
States as to allow bnnk shares to be.taxed as
heretofore without deduction. II SO, that will
afford remedy against that part OF the recent
decision. II not, you can, II upon consideration
II be tnOugnt W1SG to do so, DrOV1Qe against IL
by repeating the definition Of the term credits,
as used in the constitution, to be found in sec
tion 213D OF the Revised Statutes OF Ohio This
statutory definition is thought by many to be
unconstitutional 1t has been upheld because
of the supposed hardship of not allowing n de-
duction OF debts In making returns for taxes.
There Is much to be said on both sides OF the
question. The trainers OF the constitution con-
cluded that no deduction should be allowed.
The General Assembly subsequently took the
opposite view, which has ever since obtained.
Your attention is called to the matter only that
you may again consider II in view Of tho serious
consequences 1t has now brought upon us in
sharos.
1t is unfortunate that we should be compelled
uation that exist, and suffer the evil conse-
quencos thereof any longer; but 1t is perhapes
best In view of all considerations, as you seemed
to think at your last session, to await the timo
for the regular decennial appraisment OF real
estate before having 1t regularly re-valued.
But IL is thought something may be accom-
the special message that has been referred to,
1t is recommended that a State Board OF equal
ization be created to supcrintend the re-vauation
that was there recommended. The necessity for
such board does not depend upon re-valua-
tion. On the contrary, 1t may at least partly
obviate the need of rc-appraisement. Such
board might be empowered TO equalize the ex-
isting valuations. II created, 1t should be given
full power TO equalize county with county and
every class and kind of property with cvery
other
The action OF such board would secure uni
formtty OF valuation in law rs we'll as in fact,
and thus put an end to the litigation that is now
so successfully prosecuted by not only making
1t impossible but by removing the motive for
1t, since it is not believed there would be any
disposition to contest u taxation that was based
on fair and uniform valuation.
In addition to the duties Of equalization. for
which there Is suoh pressing demand such
board might be OF great benefitif intrustod with
taxation, and authorized to devise and enforce
a moro efficient system than now obtains for So
curing the listing and taxation OF personal prop
erty.
Tho recommendation is repented to provide
for the taxation on their gross receipts of for
eign corporations doing business In Ohio. Among
these may be mentioned telephones, transporta-
tion, sleepingcnr, parlor-car COR trust and chr
equipment companies The further recommended
tion Is also repeated that the assessors Of per-
recommendation is confined to cities because
the constitution requires the election OF oil
township officers.
IL 10 UcllcNcu tuut a lhrxc bIuOuut OI IuOEtSuBp
securities unjustly escapes taxation. 1t is quite
common to find mortgages given on property in
Ohio which are not listed for taxation. The ex-
cuse given when the mortgagee is applied to Is
that he is only IN agent for some one who Is a
nonresident. In many cases this Is no doubt
| true, but In many others 1t is only subterfuge
| to evade taxation. This abuse might be largely
| prevented by onncting that every mortgage on
| land in Ohio shall be taxed where the land Is,
and when the tax is not paid by the mortgagee, or
| some one for him, the mortgagor may pay the
same, and be credited therefor double the